XAUUSD has surprised some market participants over recent hours with a sharp unabated decline to circa 1850 . However despite the kickback at 1850 it now faces prior support circa 1870 in what could develop into Resistance.
Wave Structure - Corrective W-X-Y from Wave 3
With X printed I am anticipating a 3 wave movement to Y and the completion of Corrective Wave 4 near 1830
a - was the sharp steep price decline from X braking it's free fall around 1850 b - A push higher into 1870 former support has now set Gold up for another upswing towards 1880 and the Weekly Pivot. This would create a minor Zig-Zag b as drawn Y - Should any push higher above 1870 fail then a replication of X - a can be expected in b - Y . Some sort of wave equality would be typical at that point
Summary - The next trading session will reveal the strength of another push higher . Failure to hold any retest of support would give this Count some consideration. However continued HL's above 1870 would invalidate the concept at which point the Corrective Structure would be complete and Wave 5 commenced !
Be careful out there - Risk Management is everything
Trade active
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Approaching the red line of count invalidation . The Y has further downside in this capitulation off the back of the FOMC hawkish sentiment. Often you would of heard the phrase "Buy when all others are selling" . If that is true and Blue Wave 4 is almost complete then this is an opportunity ??
Of course nothing is certain and the future is unknown so buying here is a courageous move. I prefer to wait for at least partial evidence the sell off is done.